Yeah, I think Ellison is heading for a "phased" retirement. Eventually, he'll give up the CTO role and just be Chairman. Then he'll give up the Chairman role (perhaps when he dies).
Also your mention of his eventual death sounds insulting. There are plenty of better things to pick apart Ellison for besides his age, and he isn't all that old. There isn't a single mention of his health in the wikipedia article about him: http://en.wikipedia.org/wiki/Larry_Ellison